December 07, 2004

Journalists should disclose more about non-profits

From the Center for Science in the Public Interest:

"A group called the Center for Consumer Freedom is frequently mentioned in the media downplaying health concerns about soft drinks, restaurant meals, processed foods, and alcohol. News articles do not always identify it as such, but it is mostly funded by restaurants, tavern operators, and food companies.

So we note with interest that the watchdog group Citizens for Responsibility and Ethics in Washington (CREW) has filed a complaint with the Internal Revenue Service asking that the agency investigate the Center for Consumer Freedom, revoke its tax status, and impose large fines against it.

The Center for Consumer Freedom enjoys tax exemption as a 501(c) 3 charitable organization. But according to CREW, the CCF engaged in prohibited electioneering activities when it advocated against the presidential campaign of Rep. Dennis Kucinich (D-OH). CREW’s complaint also contends that CCF and its affiliated organizations have "made substantial, suspect payments" to its founder, Richard Berman, and Berman’s consulting firm. Those payments add up to nearly $7 million since 1997. CREW says payments that constitute "excess benefit transactions" should be subject to a 200% excise tax."

Posted by schwitz at December 7, 2004 12:32 PM
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